Cryptocurrencies are all the rage right now.
Everywhere you see headlines with impressive thousand percent gains for "coins" like bitcoin. But what gives them value? When did you ever use bitcoin?
The truth is that it is not practical right now, mainly because of the time it takes to complete a transaction. But there are other coins out there that are emerging as viable candidates to succeed with bitcoin as the # 1 cryptocurrency.
There is much to understand about the difficulties of cryptocurrencies, but this article is more about finding an investment opportunity than explaining the science behind them.
A bubble in Bitcoin?
One thing that is important to know is the concept of "mining". This is the very foundation of cryptocurrencies. How to make new bitcoins.
Simply put, "mines" through special software solve a complex math problem and are rewarded with new bitcoins as a result. Then, the transaction is stored in the blockchain and these new bitcoins are officially in circulation.
As more bitcoins are in circulation, mining them becomes more complicated and time consuming and less profitable. So even though approx. 80% of possible bitcoins are in circulation right now, the last one will not be mined until 2140.
As most people now know, bitcoin has seen a gigantic demonstration this year. In fact, it's around 1,200% over the past year, leading many people to think it's in a bubble.
The total value of bitcoins in circulation is now over $ 150 billion. If bitcoin were a company, it would be among the top 50 in the United States.
I personally think the only reason why bitcoin is so much more valuable than any other cryptocurrency is because it was the one that first broke through to the mainstream. However, it is still important. At least it gives other coin developers something to improve on.
The good thing is that even if you think you missed the boat with bitcoin, there are plenty of other cryptocurrencies out there. Of course, some are scams, but others have real potential.
One of the ones I think has real, practical use is called Dash.
Dash: Digital cash
First, Dash is ahead of the game in terms of convenience. Right now, on average, bitcoin transactions take approx. 10 minutes to an hour. Dash turns out to be the primary cryptocurrency that can be transferred instantly (in less than a second) between the parties, making it much more convenient when it comes to buying things online or in a store.
One of the most appealing features of Dash is that 10% of newly minted coins are given to Dash DAO (Decentralized Autonomous Organization). In short, DAO is Dash & # 39; s treasure trove. At the current price of more than $ 600 per Coin is $ 4 million per Month that it can use.
It is important to know that no other coins have this kind of continuous funding. With this money, Dash DAO can develop and market the currency.
Anyone can also submit an idea for a project to improve the value of Dash. Then, the project is chosen by thousands of Dash developers. An example would be collaboration with stores to make Dash a viable means of transaction for their goods.
Of course, these developers make money on Dash, so anything that benefits and promotes the currency will entice.
This creates a circular effect where the currency strengthens in price because it is better funded and marketed, then DAO makes more money and is able to market Dash even more.
A breakthrough for Dash
So far, Dash can be used in over 300 physical stores and over 100 websites to buy goods or services. But the breakthrough for that could come from the marijuana industry.
Right now, banks are not allowed to have anything to do with marijuana transactions; everything has to be done in cash. Sellers can't even put money from their sales into a bank.
Not only does this entail the risk of being robbed, but these companies have to pay for cash storage and transportation. It adds quickly.
Being able to use Dash would be huge for these vendors. That would also mean good things for the price of Dash.
The good news is that progress has already begun. In April, Dash partnered with a digital payment system called the Alt Thirty Six, which has partnerships with some of the leading dispensary business management companies in the country.
These software companies track transactions for hundreds of dispensaries and delivery services. This means that Dash users already have hundreds of ways to use the currency.
Since Dash officially became a payment method on the Alt Thirty Six on October 11, the price has risen 118%. It's only about a month and a half.
Just the beginning
With a market share of just $ 4.8 billion compared to bitcoin & # 39; s $ 156 billion, I think Dash still has plenty of room to climb ahead.
The marijuana industry is just the start for Dash, but it's a good one. In 2016, legal sales were around $ 7 billion. Additional estimated $ 46 billion Dollars were sold on the black market.
And as more stores open and marijuana becomes legal in several states, the legal number is expected to be $ 23 billion in 2021 and $ 50 billion in 2026.
Again, this is just the beginning for Dash. Its unique immediate transaction feature makes it a sustainable alternative to cash, giving it an advantage over other cryptocurrencies such as bitcoin.